A flight to Prague from Gatwick now costs less than a train journey from Brighton to London thanks to a fares war.

Within hours of internet flights firm Bmibaby launching its £23.99 single to the Czech Republic, EasyJet hit back with a £20.99 discount service.

Bmibaby responded by lowering its fare to £19.99, including taxes, which is almost £3 less than a peak first-class rail ticket from Brighton to London Bridge.

The company launches its regular services in April and tickets go on sale today.

The sales war is typical of the competition within the cut-throat air travel industry and was welcomed by Gatwick managing director Roger Cato for giving customers more choice.

Tony Davis, managing director of Bmibaby, said: "After only a few hours, customers are already seeing the benefits of new low-cost airline competition at Gatwick.

"We're delighted to be the cause of these benefits and we look forward to delivering real competition to EasyJet at the airport."

Bmibaby chief executive Austin Reid said: "Our services from London Gatwick mean we will be able to meet the needs of travellers who want low-cost, no-frills travel from a major airport in the South-East to popular destinations."

The firm is also starting a service from Gatwick to Cork in Ireland from the same price.

Mr Cato said: "We are delighted Gatwick has got off to such a good start in 2004 with a healthy growth in passenger numbers recorded for January.

"We are very excited at the fantastic range of choice of services now on offer to passengers flying from London Gatwick, from short-haul European and domestic routes right through to many worldwide, long-haul destinations."

After several years of rapid growth and huge popularity, no-frills airlines have suffered lately.

Earlier this month, Ryanair was ordered to repay up to £3 million in illegal payments received from Charleroi airport in Belgium.

Ryanair also lost a court case over providing free wheelchairs to disabled passengers. The company's share price fell by 30 per cent.

But rival EasyJet said it expected passenger numbers to grow by 20 per cent this year.

EasyJet announced this week it was beginning new routes from Gatwick to Naples, Ibiza and Faro.

Friday February 13, 2004